Former President Donald Trump says the country has a debt problem and that the ongoing debt ceiling fight can be “a very strong card to play [where Republicans] can get a lot of what they want.”
In an exclusive interview with Yahoo Finance, Trump said the prospect of a government default, which could plunge the country into a recession, can and should be a Republican lever to stop the Democratic spending efforts, including the multitrillion-dollar package of social spending currently being debated in Congress.
Senate Minority Leader McConnell has repeatedly said no Republicans will vote for a debt ceiling increase, but he has also calmed the markets some by saying “their unified Democratic government is fully capable of fast-tracking a debt limit increase on their own” (through a second reconciliation with just Democratic votes).
However, the so-called vote-a-rama process built into reconciliation procedures allows senators to offer as many relevant amendments as they want. That could potentially tie up the process for days or even weeks, pushing closer and closer to the Oct. 18 deadline when Treasury Secretary Janet Yellen says the government would likely default.
Trump, who still holds immense sway over many conservative Republican lawmakers, seems to want his allies to at least bring things right to the edge, reasoning, “I think we’re in trouble no matter what.”
“You just look at what’s happening and there are a lot of bad scenarios,” Trump said, arguing that a debt default or a passage of the Democrats’ agenda would be similarly unpleasant outcomes.
Putting the full faith and credit of the government even more on the line is a “very, very powerful card,” Trump said. “Hopefully [the Republicans] won’t have to play it, but I think they will in order to do something” about the Democratic efforts.
Donald Trump waves before departing for Florida on his final day as President on January 20, 2021. During his time in office, the national debt rose by roughly $7.8 trillion. (Pete Marovich – Pool/Getty Images)
What remains to be seen is if Trump will call on his his allies to try and push the complicated reconciliation process off the rails and – in the process – likely ensure a government default.
‘A grave threat’
Also left unmentioned by Trump was his own role in the current debt predicament. The former president’s focus on fighting deficits comes after his 4 years in office when, according to data from the Federal Reserve, the national debt rose by roughly $7.8 trillion.
Trump entered the White House promising to eliminate the U.S. debt in 8 years, but ended up adding about $23,500 in new federal debt for every person in the…
Trump, after adding trillions to the government’s IOUs, comments on
Former President Donald Trump says the country has a debt problem and that the ongoing debt ceiling fight can be “a very strong card to play [where Republicans] can get a lot of what they want.”
In an exclusive interview with Yahoo Finance, Trump said the prospect of a government default, which could plunge the country into a recession, can and should be a Republican lever to stop the Democratic spending efforts, including the multitrillion-dollar package of social spending currently being debated in Congress.
But would that make a default even more likely in the coming weeks? The markets are already spooked by the faceoff between Sen. Chuck Schumer and Sen. Mitch McConnell over how to proceed on the issue.
Senate Minority Leader McConnell has repeatedly said no Republicans will vote for a debt ceiling increase, but he has also calmed the markets some by saying “their unified Democratic government is fully capable of fast-tracking a debt limit increase on their own” (through a second reconciliation with just Democratic votes).
However, the so-called vote-a-rama process built into reconciliation procedures allows senators to offer as many relevant amendments as they want. That could potentially tie up the process for days or even weeks, pushing closer and closer to the Oct. 18 deadline when Treasury Secretary Janet Yellen says the government would likely default.
[Read more: Trump warns on ‘scary’ inflation, says surging prices will ‘ravage our country’]
Trump, who still holds immense sway over many conservative Republican lawmakers, seems to want his allies to at least bring things right to the edge, reasoning, “I think we’re in trouble no matter what.”
“You just look at what’s happening and there are a lot of bad scenarios,” Trump said, arguing that a debt default or a passage of the Democrats’ agenda would be similarly unpleasant outcomes.
Putting the full faith and credit of the government even more on the line is a “very, very powerful card,” Trump said. “Hopefully [the Republicans] won’t have to play it, but I think they will in order to do something” about the Democratic efforts.
What remains to be seen is if Trump will call on his his allies to try and push the complicated reconciliation process off the rails and – in the process – likely ensure a government default.
‘A grave threat’
Also left unmentioned by Trump was his own role in the current debt predicament. The former president’s focus on fighting deficits comes after his 4 years in office when, according to data from the Federal Reserve, the national debt rose by roughly $7.8 trillion.
Trump entered the White House promising to eliminate the U.S. debt in 8 years, but ended up adding about $23,500 in new federal debt for every person in the…
Read More: Trump, after adding trillions to the government’s IOUs, comments on